ShippingWatch

High number of feeder ships lie still

Not only have too many ships been built. They have been built at too high a price and with too much borrowing”, says Unifeeder CEO, Jesper Kristensen.

Across Europe, up to 15-20 relatively new built feeder ships or approximately 10 percent of the global fleet of small container ships (approximately 800-1600 teu) lie still according to an estimation from Unifeeder CEO, Jesper Kristensen.  The decommissioning is clear evidence of overcapacity and low rates also affecting small container ships and the situation is not likely to improve in the near future. On the contrary, a lot more ships will be laid up if the market will not recover.

“In the present situation, not many shipping companies can afford to lose money every day. Therefore they choose to dock them and in that way save the daily operating costs. However, this has helped place a floor under the prices and as a consequence the rates are not as low as when the situation was at its worst in 2009”, says Jesper Kristensen, who compare the feeder market crises to the housing bubble.

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